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INTRODUCTION TO DIGITAL ECONOMY, 12 CHARACTERISTICS OF DIGITAL ECONOMY,…
INTRODUCTION TO DIGITAL ECONOMY
INNOVATION
In innovation economy, human imagination and creativity are the main sources of value. In digital economy, the challenge lies in creating an environment which encourages and rewards innovation
Knowledge = Wealth
Knowledge is the driver and other traditional resources are secondary.
Organizations will be forced to change their old opinion of employees and try to retain and develop the capabilities of knowledge workers.
VIRTUALIZATION
Convert physical and tangible things into a
virtual environment.
Induce changes to existing rules pertaining the types of institutions, the social relationships as well as nature of the economic activity
DIGITISATION
Knowledge can now be stored in digital form
or in 0s and 1s.
Information in digital form, facilitated by the digital devices allows the free movement of vast amount of information in the shortest possible time between people.
CONVERGENCE
The dominant economic sector is being gelled together by the convergence of computing, communications and content – creating an interative multimedia platform
12 CHARACTERISTICS OF DIGITAL ECONOMY
IMMEDIACY
The time lapse between ordering of a product and its creation and delivery is shrinking dramatically
INTEGRATION/NETWORKING
Where all the players – suppliers, customers, competitors, and so on will have to interact and integrate in order to survive.
GLOBALIZATION
With knowledge becoming a key resource, there exists only one world economy even if organizations still exist within local areas
DISINTERMEDIATION
Businesses are directly connected with their customers as technology facilitates the exchange of information between suppliers and customers, signalling the end of middleman.
DISCORDANCE
The gap between the technologically literate “haves” and the “have-nots” who do not have access to technology is growing and may cause significant problems to society in the future.
Digital Economy refers to an economy that is
based on digital technologies
PROSUMPTION
From mass production to mass customization.
MOLECULARIZATION
The light organizations will survive while the heavy organizations will eventually die out as it is harder for them to change and adapt to the static conditions in the new economy